Government expands apprenticeship funding as PM targets youth employment

The Prime Minister’s Office has announced a series of apprenticeship and skills reforms aimed at increasing opportunities for young people and helping employers recruit and train staff.

The plans include fully funding apprenticeship training costs for eligible under-25s at smaller businesses from August by removing the existing 5% co-investment requirement.

The Government said the reforms form part of a wider £2.5bn investment package over the next three years designed to support young people into work, apprenticeships and training.

Measures include a £1bn investment expected to support 50,000 additional young people into apprenticeships and high-quality training, alongside a £3,000 payment for employers hiring 18 to 24-year-olds who have been claiming Universal Credit for at least six months.

The Government is also expanding the Jobs Guarantee scheme from 18 to 21-year-olds to include those aged up to 24, which it said would create more than 35,000 additional subsidised jobs.

New foundation apprenticeships in sectors including hospitality and retail will also be introduced, while shorter training courses focused on areas such as AI, engineering and digital skills have already launched.

Keir Starmer is expected to meet apprentices on Tuesday as part of the Government’s push to place apprenticeships on an equal footing with university education.

Pat McFadden, Secretary of State for the Department for Work and Pensions, said: “Too many young people have been locked out of good work and real opportunity. We are changing that and we are already making good on that promise.